The Best Nanny Payroll Services of 2023

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If you precocious hired a nanny, gardener, oregon backstage in-home nurse, the national authorities considers you a household employer. Like immoderate different benignant of employer, household employers indispensable withhold payroll taxes from their workers’ paychecks, wage the national unemployment tax, and wage the leader fractional of an employee’s Medicare and Social Security taxes (FICA tax).

These analyzable fiscal tasks tin beryllium hard to understand, which is wherefore galore parents take to usage nanny payroll bundle that calculates and files payroll taxes connected their behalf. Below, we database immoderate of the champion nanny payroll taxation services for parents and different household employers who would alternatively walk their clip connected thing different than analyzable taxation laws.

Best nanny bundle diagnostic examination table

SoftwareStarting priceFree proceedings oregon demoDirect deposit and insubstantial cheque optionsAutomatic taxation remittance to the IRSEnd-of-year taxation signifier preparationAvailability successful each 50 U.S. states
SurePayroll logo.Visit $49.99/mo.1 mo.Direct deposit only
HomePay logo.Visit $59/mo.

GTM logo.Visit $70/mo.

Poppins Payroll logo.Visit $49/mo.1 mo.

Run ADP logo.Visit CustomSelf-guided demo

HomeWork Solutions logo.Visit $165/quarter

The Paychex logo.VisitCustom

SurePayroll by Paychex: Best wide nanny payroll service

SurePayroll by Paychex logo.Image: SurePayroll by Paychex

SurePayroll by Paychex is an affordable, afloat featured enactment for parents who privation each facet of payroll taken disconnected their hands. The nanny payroll mentation of the company’s small-business payroll software work automates taxation filing, paycheck calculation, nonstop deposit and authorities new-hire reporting (a mandatory request for each household employers). It besides generates a Schedule H taxation signifier — a.k.a. Form 1040 for household employment taxes — that household employers indispensable taxable with different taxation forms astatine the extremity of each fiscal year.

Unlike galore different nanny payroll providers, SurePayroll by Paychex doesn’t person immoderate add-on fees for taxation filing, specified arsenic end-of-year taxation signifier preparation. While it doesn’t person 24/7 lawsuit service, its lawsuit enactment squad is based successful the U.S. and is disposable evenings and weekends. You don’t person to motion a year-long declaration to usage its services; instead, you wage period to month, which gives greater flexibility to household employers who prosecute workers seasonally.

Features

  • Two-day nonstop deposit.
  • Autopilot diagnostic for payroll runs.
  • Automatic federal, authorities and section taxation filing.
  • Automatic authorities new-hire reporting.
  • Signature-ready Schedule H taxation signifier generation.

Pros

  • Low pay-as-you-go monthly price.
  • No add-on fees for automatic taxation filing.
  • Extended lawsuit work hours, including unrecorded assistance connected nights and weekends.
  • Easy worker self-service via the user-friendly SurePayroll by Paychex app.

Cons

  • Customer enactment isn’t disposable 24/7.
  • Two-day nonstop deposit lone (no same-day oregon next-day outgo options).
  • No insubstantial cheque outgo option.

Pricing

SurePayroll by Paychex charges a level complaint of $49.99 per period for its nanny payroll service. SurePayroll by Paychex is 1 of the lone nanny payroll providers that doesn’t complaint other fees for year-end taxation preparation, relationship setup, oregon taxation remittance to the IRS. It besides has a one-month escaped trial.

A fewer further fees see multi-state taxation filing ($9.99 per further state) and a interest for much than 1 worker ($10 per period per other employee).

HomePay: Best nonrecreational setup service

The HomePay logo.Image: HomePay

HomePay is simply a nanny payroll work owned by Care.com. Along with automatic paycheck calculation and payroll taxation remittance, HomePay onboards employees connected your behalf. Your employees tin usage HomePay’s app to accrue paid clip disconnected and get reimbursed for their expenses.

After HomePay sets up your employees’ payroll accounts, your workers tin interaction HomePay straight for lawsuit support. Employers besides get unlimited lawsuit work arsenic good arsenic assistance successful a imaginable audit. The institution volition enactment arsenic your constituent of interaction for each authorities taxation agencies, meaning it volition person and negociate each authorities taxation notices truthful you person 1 little taxation task to woody with.

Features

  • End-of-year taxation signifier preparation.
  • Integration with HomePay’s clip tracking software.
  • Automatic payroll runs.
  • State new-hire reporting.

Pros

  • Six-month money-back guarantee.
  • User-friendly mobile apps for employers and employees.
  • State taxation management.

Cons

  • No escaped trial.
  • Extra interest for year-end taxation preparation.
  • No worker payment add-ons.

Pricing

HomePay starts astatine $59 a period for basal services, which see worker onboarding, basal payroll and taxation mentation and remittance. HomePay’s much robust program starts astatine $75 per month, though the work is billed quarterly astatine $300 per quarter.

HomePay besides charges an further $100 interest for end-of-year taxation preparation, which includes Schedule H, 1040, W-2, and W-3 tax-form preparation.

GTM Payroll Services: Best lawsuit education

The GTM logo.Image: GTM Payroll Services

GTM Payroll Services takes attraction of each portion of household payroll connected your behalf. It besides goes the other mile to assistance customers recognize their caller relation arsenic household employers. Educational materials connected GTM Payroll Services’ tract see a escaped nanny paycheck calculator, accusation connected creating an Employer Identification Number, a usher to household workers’ rights and a database of household leader obligations by state.

If your U.S. authorities requires you to person workers’ compensation insurance, GTM Payroll Services tin lucifer you with an security supplier and integrate your premium payments with your payroll software. The nanny taxation work tin besides assistance you recognize laws governing workers’ compensation successful your state.

Features

  • Autopilot enactment to automatically tally payroll connected a schedule.
  • Guided self-service payroll onboarding done an online worker portal.
  • Optional worker benefits, including health, vision, and dental insurance.

Pros

  • Comprehensive, personalized lawsuit enactment with extended work hours.
  • Access to CPAs, household employment professionals and payroll experts.
  • Workers’ compensation security add-on.
  • Thorough household leader assets library.

Cons

  • Six-month minimum declaration required upfront.
  • Non-waivable $99 setup interest for each caller clients.

Pricing

GTM Payroll Services starts astatine $70 per period for 1 employee. Each further worker you wage adds an other $20 to your monthly price. GTM besides has a year-end tax-filing interest of astir $120, though the work is optional and you tin hole taxes yourself with nary penalty.

Poppins Payroll: Best for affordable nanny payroll

The Poppins Payroll logo.Image: Poppins Payroll

Apart from SurePayroll, Poppins Payroll has the fewest add-on fees of immoderate nanny taxation work connected our best-of list. In opposition to astir different payroll solutions, it has a 30-day escaped proceedings without charging a sign-up fee, end-of-year taxation mentation interest oregon nonstop deposit fee. Along with being 1 of the cheapest nanny payroll services, Poppins Payroll’s nanny payroll work is much versatile than astir (for instance, it offers worker outgo options similar insubstantial checks oregon nonstop deposit alternatively of 1 oregon the other).

Features

  • Federal Employer Identification Number setup.
  • Automatic authorities new-hire reporting.
  • PTO and sick permission tracking.
  • Direct deposit and insubstantial cheque outgo options.

Pros

  • Helpful state-by-state assets guides.
  • No end-of-year taxation mentation fees.
  • User-friendly dashboard and interface.

Cons

  • Not disposable successful each states.
  • No mobile payroll app.

Pricing

Poppins Payroll costs a $49 per period level fee, which makes it the cheapest nanny payroll work connected our list.

Run Powered by ADP: Best for worker benefits

The ADP logo.Image: ADP

ADP is 1 of the biggest names successful planetary payroll, but connected apical of its enterprise-level payroll solutions, it has small-business payroll software that doubles arsenic an effectual nanny taxation service. ADP’s bundle product, RUN Powered by ADP, comes with a broad mobile app that employers tin usage to tally payroll from anyplace and employees tin usage to update their taxation accusation and timepiece successful and out.

Apart from its easiness of use, ADP’s biggest strength is successful however galore worker benefits it offers. Household employers tin take from healthcare plans, 401(k) status accounts and dental and imaginativeness wellness insurance. The company’s 24/7 lawsuit enactment and three-month escaped proceedings besides assistance ADP basal retired from the crowd.

For much accusation connected ADP, work our broad ADP payroll bundle review.

Features

  • Direct deposit, insubstantial cheque and prepaid debit paper worker wage options.
  • Background checks.
  • Optional retirement, wellness security and workers’ compensation security add-ons.
  • Time and attendance add-on.

Pros

  • Multiple worker payment options.
  • Excellent mobile app with self-service onboarding for employees.
  • More HR features and enactment compared to astir payroll software.

Cons

  • No transparent pricing online.
  • Additional fees for immoderate services, including clip tracking and W-2 and 1099 taxation signifier preparation.

Pricing

ADP doesn’t database pricing for immoderate of its payroll bundle plans online. Contact ADP’s lawsuit work squad straight for a personalized quote.

HomeWork Solutions: Best tax-only work option

The HomeWork Solutions logo.Image: HomeWork Solutions

HomeWork Solutions is different nanny payroll work tailored straight toward household employers. The institution has 2 plans: A payroll tax-only program that leaves paying your worker up to you, oregon a implicit payroll program that combines payroll-tax medication with worker wage management.

HomeWork Solutions has add-on fees that providers similar Poppins Payroll and SurePayroll lack, specified arsenic a year-end taxation signifier interest and a one-time setup fee. Additionally, if you usage HWS for some taxation medication and worker payments, you tin lone opt for play oregon biweekly wage schedules. Most different services person escaped unlimited payroll runs, meaning you tin wage your worker arsenic galore times arsenic you privation each period without being charged extra.

Features

  • Automatically generated Schedule H and W-2 forms.
  • Federal Employer Identification Number setup and authorities new-hire reporting.
  • Employee substance alerts.
  • Thorough taxation administration.

Pros

  • Check outgo enactment disposable connected request.
  • Dedicated one-on-one lawsuit enactment (Complete Payroll program only).
  • Multiple program options, including cheaper tax-only plan.

Cons

  • Expensive plans with aggregate add-on costs.
  • No escaped unlimited payroll runs (weekly oregon biweekly only).
  • No payroll app.

Pricing

HomeWork Solutions has 2 plans:

  • Essential Payroll: Starts astatine $165 per quarter. Includes taxation filing only.
  • Complete Payroll: Starts astatine $245 per 4th (weekly payroll) oregon $220 per 4th (biweekly payroll). Includes taxation filing and nonstop deposit.

HomeWork Solutions besides charges respective further fees, including a $110 interest for year-end payroll taxation filing and a $110 setup interest for caller users.

Paychex Flex: Best for worker self-service

The Paychex logo.Image: Paychex

Paychex is simply a large subordinate successful the satellite of payroll for businesses, but its bundle product, Paychex Flex, tin enactment for nanny payroll too. As a full-service payroll system, Paychex calculates your household employee’s paycheck, deposits it automatically and calculates and remits taxes to the government. Its stellar mobile app for employees makes clocking successful and retired casual and gives workers quick, casual entree to their wage stubs and taxation documents.

However, since Paychex Flex is tailored toward small-business payroll (rather than circumstantial to household employers), its interface volition person a steep learning curve for astir parents. Much similar ADP, it besides has acold much tools than astir household employers need, particularly those who person 1 part-time idiosyncratic alternatively than a fleet of location employees. Still, it mightiness beryllium a bully prime for employers who privation to connection a fistful of affordable benefits to employees.

Features

  • Automatic authorities new-hire reporting.
  • Human assets room access.
  • Employee benefits similar wellness security and 401(k) status accounts.
  • Integration with Paychex’s autochthonal time-tracking solution.

Pros

  • 24/7 lawsuit support.
  • Multiple worker wage options, including checks, nonstop deposit and prepaid debit cards.
  • Dedicated HR lawsuit work representative.

Cons

  • Additional fees for immoderate integral features, specified arsenic taxation service.
  • Steep bundle learning curve for household employers.
  • More features than astir household employers need.

Pricing

Paychex has 3 main payroll plans for tiny businesses and household employers:

  • Paychex Flex Essentials: Starting from $39 per period positive $5 per idiosyncratic per month.
  • Paychex Flex Select: Custom quotes only.
  • Paychex Flex Pro: Custom quotes only.

The archetypal plan, Paychex Flex Essentials, should person capable basal payroll features to suit astir household employers. The second- and third-tier plans are amended for employers who privation to connection much benefits with thorough HR support, though these plans are geared toward tiny and midsize concern owners alternatively than parents.

What are the cardinal features of nanny payroll services?

While determination are cardinal differences betwixt payroll solutions, astir nanny payroll services should see a premix of the pursuing features.

Automatic taxation calculation and remittance

If you’re comfy filing taxes yourself and similar to prevention wealth connected nanny software, you tin find cheaper DIY taxation bundle options (or adjacent free payroll solutions) that cipher paychecks and taxation deduction amounts, but permission the existent filing up to you.

However, figuring retired the nanny taxation is hypothetically the astir burdensome portion of hiring a household worker. Consider prioritizing nanny taxation bundle that calculates and files taxes for you.

Multiple worker wage options

Most payroll bundle solutions see nonstop deposit arsenic their main worker outgo method. However, portion nonstop deposit is 1 of the simplest ways to wage your employees connected time, it’s not ever the champion enactment for each employers and employees. If you privation to connection much outgo options to your employees, look for bundle with nonstop deposit, insubstantial cheque and adjacent prepaid debit paper options.

Time-tracking integration

Like different employees, household workers are entitled to overpay if they’re paid hourly and their enactment week exceeds 40 hours. Time-tracking software is the easiest mode for some you and your employees to marque definite workers are being compensated for their existent hours worked portion keeping you compliant with national law. Some time-tracking tools besides fto you acceptable up paid clip disconnected and sick permission policies based connected your employees’ hours worked.

Employee payment add-ons

While household employers aren’t legally obligated to connection worker benefits similar wellness security and 401(k) status plans, immoderate take to connection benefits to pull apical endowment oregon clasp employees.

Customer support

Your nanny payroll company’s lawsuit enactment squad should beryllium disposable to assistance some you and your household employees. Ideally, your squad is disposable circular the timepiece oregon other connected an extended docket that includes weeknights and immoderate play hours. You mightiness besides see choosing a nanny taxation work that works straight with your employees to acceptable up their clip tracking and payroll software.

Employee self-service portals

Employees request to entree their taxation data, hours worked, wage stubs and nonstop deposit information. Usually, the astir convenient mode for them to bash truthful is done a mobile app, oregon astatine slightest done a mobile-friendly website. Whether done an app oregon website, employees should beryllium capable to negociate their ain information independently.

Nanny payroll taxation overview

Generally speaking, the lone household employment taxes you request to interest astir are the pursuing two:

  • FICA taxes, which see Social Security and Medicare taxes.
  • FUTA taxes, oregon national unemployment security taxes, which are paid for by employers (not employees).

Along with correctly withholding their employees’ FICA taxes and remitting them to the national government, employers indispensable lucifer their employees’ FICA taxes dollar for dollar.

For the 2023 taxation year, the Social Security taxation complaint is 6.2% portion the Medicare taxation complaint is 1.45%. You’ll request to lucifer immoderate dollar magnitude your employee’s taxation complaint adds up to with each paycheck.

Employers are besides liable for paying FUTA taxes, which are unemployment security taxes. These taxes are paid solely by employers, not by their employees. You whitethorn besides request to wage a authorities unemployment security taxation depending connected which authorities you unrecorded in.

Nanny payroll taxation bundle tin assistance you cipher FICA taxes, including the worker and leader information of the tax, arsenic good arsenic FUTA taxes, past deposit those taxes by their tax outgo deadlines.

While household employers don’t person to withhold and record income taxes for their employees, your worker mightiness arsenic you to bash so. Nanny payroll services tin typically assistance you tackle this task arsenic well.

How tin I take the close nanny payroll work for my household?

The close payroll bundle for your household volition beryllium connected a assortment of cardinal considerations. First, inquire yourself however overmuch you’re consenting and capable to wage for a nanny taxation service. Don’t hide to look into sneaky add-on fees, particularly setup and end-of-year tax-filing costs, and see those successful your wide nanny payroll budget.

Next, look astatine features. Would you alternatively person bundle that automatically runs payroll connected a pre-set schedule, oregon would you similar to tally payroll yourself each wage play truthful you tin double-check for accuracy? Do you worth tools similar mobile payroll apps, oregon are you blessed capable with an online interface only? Asking these types of questions tin assistance you constrictive down which payroll bundle is close for you.

Methodology

To constitute this piece, we lone looked astatine concern payroll bundle with household employment options and astatine nanny payroll-only companies. We past ranked our payroll bundle picks utilizing the pursuing factors:

  • Price, namely whether the fig of features warranted the outgo and whether determination were immoderate add-on fees.
  • Nanny payroll features similar Schedule H signifier generation, FUTA taxation medication and household leader HR resources.
  • General payroll bundle features similar nonstop deposit, escaped unlimited payroll runs and mobile payroll tools.
  • Ease of use, lawsuit work hours and availability, dashboard and idiosyncratic interface, taxation accuracy guarantees and more.

To stitchery this information, we talked to lawsuit work reps to get pricing and program information, thoroughly reviewed each provider’s website, work aggregate lawsuit reviews and considered demos and YouTube how-to videos whenever they were available.

Frequently asked questions

Why bash I request nanny payroll services?

If you employment a nanny, the IRS considers you a household employer, which means you’re liable for withholding cardinal payroll taxes from your nanny’s paycheck. You indispensable besides wage employer-only taxes, specified arsenic the leader information of Medicare and Social Security taxes, positive national and authorities unemployment taxes.

Understanding these caller taxation obligations tin beryllium challenging astatine best, arsenic tin preparing and filing the close quarterly and end-of-year taxation forms. A nanny payroll work volition automatically cipher your nanny’s payroll taxes. The astir broad nanny payroll bundle volition besides withhold and remit those taxes to the national authorities connected the due cadence.

Most nanny payroll services besides hole indispensable end-of-year taxation forms, though astir complaint an further interest for taxation signifier preparation. (Poppins Payroll and SurePayroll, which don’t complaint other for end-of-year taxation signifier prep, are cardinal exceptions.) Additionally, nanny payroll bundle typically calculates nanny paychecks and tin wage your household worker automatically done nonstop deposit oregon insubstantial check.

In short, having a nanny payroll work tin guarantee you wage your nanny connected clip and fulfill your caller taxation obligations with arsenic small accent arsenic possible.

Can I usage a regular payroll work for my nanny?

No. Regular payroll services are intended for businesses, not households, and don’t connection the features household employers request to wage their employees. Some regular payroll providers, specified arsenic Paychex and SurePayroll, connection nanny-payroll versions of their regular software. Other nanny payroll providers, specified arsenic HomePay and HomeWork Solutions, are nanny-payroll specific.

Should I springiness my nanny a W-2 signifier oregon 1099 form?

You should springiness your nanny a W-2 form, not a 1099 form, erstwhile they archetypal commencement moving for you.

How bash I acceptable up payroll for my nanny?

The archetypal measurement to mounting up payroll for your nanny is to use for an employer recognition number online. You should besides person your nanny capable retired a W-2 form.

The easiest mode to acceptable up payroll for your nanny is by subscribing to a nanny payroll service. Many nanny payroll services automate each facet of paying a nanny oregon different in-house employee, including calculating paychecks, paying your nanny done nonstop deposit and filing employment taxes connected a regular basis.

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